5 Crypto Trading Rules for the Overly Emotional
Whether you’re an INTJ or an ENFP, your shitcoin compass may become wafer thin as soon as you enter the world of cryptocurrency trading. It’s like hopping onto your favorite Six Flags ride and then following it up with two massive helpings of cotton candy before you jump back onto the Thunderbolt for one final spin – blindfolded.
Despite the rush, the nausea, the uncertainty and mad volatility, there are a few rules that can help keep you and your crypto compass (somewhat) on track.
Rule #1 – Check your optimism and pessimism at the door
When it’s going up, it will never come down. When it’s down, it will never go back up. Neither is true.
Rule #2 – Remove the blinders and spot the bot
Before you invest, learn how to spot a coin that is prone to pump-and-dump schemes. WorldCoinIndex will show you a coin’s chart history in 1-day, 7-day, 1-month, 3-month, 6-month, and 1-year intervals along with all-time activity. If a chart has repeated spikes followed by huge drops, you may want to run.
Rule #3 – Commit and be ready to hodl
Support blockchain projects that inspire you by investing in coins you wouldn’t mind kissing and keeping for the long haul. You just may need to, if your end-of-week-dream target turns into a toad.
Rule #4 – Remember that it’s not the end of the world
…unless you invested money you can’t afford to lose, in which case you need a new investment strategy.
Rule #5 – Know thyself
We hear that the crypto market is mercurial and driven by emotions, along with the figment of our collective imagination about value and worth. As you become more seasoned and more in tune with how the market behaves, it’s wise to check in with your own behaviors as well, because it’s you who may be prone to hodling forever (to your detriment) or exiting a sour investment after a hot second (at a great loss). Learn everything you can about your attachment style and use that knowledge to improve your judgment and your trading strategies.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin or cryptocurrency. Your transfers and trades are at your own risk. Any losses you may incur are your responsibility. Please note that The Daily Hodl participates in affiliate marketing.